Hindustan Zinc (500188) Q4 97/98 earnings summary

Executive summary

• FY1997-98 performance was rated “Excellent” under the Government of India MoU; record sales turnover reached Rs. 1,233.74 crore and profit before tax hit a record Rs. 201.77 crore.

• Stronger operating performance and sales coincided with higher power tariffs and royalty rates; net profit after tax was Rs. 73.77 crore.

Financial highlights

• Sales turnover rose 27% YoY to Rs. 1,233.74 crore from Rs. 971.70 crore; profit before tax increased to Rs. 201.77 crore from Rs. 56.22 crore.

• Net profit after tax was Rs. 73.77 crore vs Rs. 30.22 crore; earnings per share was Rs. 1.75 vs Rs. 0.72.

• Gross profit (PBID) was Rs. 285.91 crore; interest was Rs. 26.74 crore and depreciation/amortisation was Rs. 57.16 crore.

Outlook and guidance

• A phased action plan to improve Chanderiya Lead-Zinc Smelter performance was under implementation; Debari Zinc Smelter ISO 9002 accreditation was expected in FY1998-99.

• Sindesar Khurd was planned as a replacement mine for Rajpura-Dariba, with 1,000 tpd capacity and estimated cost of Rs. 92 crore; shaft and ramp excavation tenders were issued.

• Detailed exploration at Kayar was underway, with Rs. 12 crore estimated for exploration and preparation of a feasibility report.